Exhibit 99.1
[XL Capital Logo Omitted]
XL Capital Ltd
XL House
One Bermudiana Road
P. O. Box HM 2245
Hamilton HM JX
Bermuda
Phone: (441) 292-8515
Fax: (441) 292-5280
Press Release
Contact: David Radulski Roger R. Scotton
Investor Relations Media Relations
(441) 294-7460 (441) 294-7165
XL CAPITAL LTD ANNOUNCES RECEIPT OF DRAFT REPORT OF
THE INDEPENDENT ACTUARY REGARDING WINTERTHUR INTERNATIONAL
NET RESERVE AND PREMIUM SEASONING
HAMILTON, BERMUDA - November 23, 2005 - XL Capital Ltd ("XL" or the "Company")
(NYSE: XL) announced today that it received a draft actuarial report from the
Independent Actuary in connection with XL's post-closing protection for adverse
development of net loss and unearned premium relating to XL's acquisition of
certain Winterthur International insurance operations from Winterthur Swiss
Insurance Company ("WSIC") in 2001.
Initial review of the Independent Actuary's draft report indicates that the
Independent Actuary has determined that WSIC's submitted Seasoned Net Reserve
Amount ("SNRA") and Net Premium Receivable Amount ("NPRA") are closest to the
Independent Actuary's determinations of SNRA and NPRA. These determinations, if
made final as described further below, would result in XL receiving a net lump
sum payment in the amount of approximately $575 million (including interest
receivable) from WSIC.
The Independent Actuary has indicated to the parties that he intends his draft
report to be final absent manifest errors. The parties have been advised by the
Independent Actuary that he will revise the draft report for any manifest errors
brought to his attention by the parties and finalize the report by December 5,
2005 (after the close of regular market hours on the NYSE). The Independent
Actuary's report and the determinations therein become final on such date under
the terms of the Sale and Purchase Agreement, as amended, between XL Insurance
(Bermuda) Ltd and WSIC (the "SPA"). Under the terms of the SPA, the amounts due
to XL as described above are payable within five business days of the
Independent Actuary's report becoming final. Accordingly, absent manifest errors
in the draft report as described above,
an aggregate of $575 million (including interest as described above) will be due
to XL from WSIC by December 12, 2005. If the draft report is finalized in the
time period described above, XL would expect to record a loss of approximately
$830 million in the fourth quarter of 2005 relating to the independent actuarial
process.
XL Capital Ltd, through its operating subsidiaries, is a leading provider of
insurance and reinsurance coverages and financial products and services to
industrial, commercial and professional service firms, insurance companies and
other enterprises on a worldwide basis. As of September 30, 2005, XL Capital
Ltd had consolidated assets of approximately $54.9 billion and consolidated
shareholders' equity of approximately $7.0 billion. More information about XL
Capital Ltd is available at www.xlcapital.com.
This press release contains forward-looking statements. Statements that are not
historical facts, including statements about XL's beliefs, plans or
expectations, are forward-looking statements. These statements are based on
current plans, estimates, and expectations. Actual results may differ materially
from those included in such forward-looking statements and therefore you should
not place undue reliance on them. A non-exclusive list of the important factors
that could cause actual results to differ materially from those in such
forward-looking statements includes the following: (a) the timely and full
recoverability of reinsurance placed by XL with third parties, or other amounts
due to XL, including, without limitation, amounts due to XL from Winterthur
Swiss Insurance Company (i) in connection with the independent actuarial process
or (ii) under other contractual arrangements; (b) greater frequency or severity
of claims and loss activity than XL's underwriting, reserving or investment
practices anticipate based on historical experience or industry data; (c) trends
in rates for property and casualty insurance and reinsurance; (d) developments
in the world's financial and capital markets that adversely affect the
performance of XL's investments or access to such markets; (e) changes in
general economic conditions, including foreign currency exchange rates,
inflation and other factors; and (f) the other factors set forth in XL's most
recent reports on Form 10-K, Form 10-Q, and other documents on file with the
Securities and Exchange Commission, as well as management's response to any of
the aforementioned factors. XL undertakes no obligation to update or revise
publicly any forward-looking statement, whether as a result of new information,
future developments or otherwise.